5 Critical Insights from Zurich's 2023 Life Insurance Claims Report
Knowing how efficient a life Insurance company is when it come to paying claims, is crucial information. Especially if you are looking to buy life insurance.
Zurich Insurance promptly publishes its claims statistics every year. They shared their 2023 Life Insurance claims report last week. There were several key insights and highlights on it. I am sharing the top 5 here;
Youngest, Oldest, and Average
The youngest claimant of Children's critical illness was two years, while the youngest claimant of adult critical illness benefit was 27.
The oldest person who was paid a critical illness claim was of age 84. They should have subscribed to the Futura - Whole of Life Plan and hence could claim at age 84.
The average age was 49, meaning more people are being diagnosed with severe ailments before retirement. Loss of income during this peak earning period could have a devastating impact on the finances.
Thankfully, these people had a Zurich plan, which paid on time.
Those with no cover would have had to dip into their savings, liquidate assets or struggle to manage their living expenses, pay loans, bills, and other commitments.
Likewise, the youngest life insurance claimant was of 27 years of age, while the oldest was 80 years old. However, the key number was the average age of 54.
1 out of 4 - Early Claims
A frightening 1/4th of claims paid were on policies issued within three years of inception, and more importantly, 85% of these claimants had no prior medical history or ailments.
Imagine what would have happened if they had delayed their policy purchase for a year or two.
Thankfully the claimants had made the wise decision early. The best time to buy Life and critical illness insurance is when you are young and healthy. The next best time is now.
Cancer and Cardiovascular diseases have been significant causes of life and critical illness insurance claims.
34% of life claims were due to heart attacks, and 24% were due to Cancer.
40% of male critical illness claims were due to heart attack, while 43% of female critical illness claims were due to cancer.
The good news is more people are surviving these dreaded diseases, but the challenge, however, would be to manage the loss of income, change in lifestyle, and other crucial aspects, including work and finances. Having a critical illness policy paying a cash lump sum could greatly support the survivors.
Small Claims in Big Numbers
Despite high disposable incomes in the UAE, 83% of the critical illness and 73% of life cover claims were of policies with coverage amounts less than $200,000.
These people could have spent a few hundred dirhams more and availed a bigger cover, and the additional funds could have been much more handy.
Typically households allocate significantly less or no budget towards Life and critical illness insurance. Hence they end up buying very less cover when presented with a proposition.
You can safely allocate 3-5% of your income towards protection and still have adequate for other expenses and investments. This could be handy during adverse periods like death, disability, or critical illness.
Claims were paid out in 70 countries.
A good percentage of UAE's population is transient; they live here for a few years before moving back to their home country or immigrating to another. While this trend is changing quickly, it is good to know that Zurich was able to pay claims to policyholders in 70 countries. Last year this number was 53.
This is a big reassurance to people who are skeptical about whether they would get claims if they move out of the UAE.
The report also highlighted the exceptional track record of Zurich. 98% of life claims and 96% of Critical illness claims were paid in the last three years.
The average time taken to pay a claim is no longer measured in days or weeks. It has been measured in hours since last year. The average time Zurich's claims department took was 72 hours; the fastest claim was paid in just 24 hours.
Furthermore, an impressive 97% of the applicants were approved and were provided cover even when some of them had pre-existing conditions like;
- Heart Disease
- Lipid Disorders
Like last year, three claimants volunteered to share their stories on a video to inspire people like you and me on the importance of Life and critical illness insurance.
Here are the links to the videos;
The Zurich 2023 Claims Report reinforces the undeniable importance of buying comprehensive Life and critical illness insurance coverage.
Don't delay securing your future—take inspiration from these insights and make informed decisions to protect yourself and your loved ones today.
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